Eicher Motors profit falls 6% in Q3: Stocks
Eicher Motors profit falls 6% in Q3
India’s largest auto-mobile company Eicher reported a 6.42% year-on-year drop in combined profit for the quarter December 31 on Thursday. while, their sales increased up to 1%.
Royal Enfield makers said, “the company profits came at Rs 498.70 crore compared with the Rs 532.95 crore in the same quarter previous financial year. Sales rise 0.95% to Rs 2,350.45 against Rs 2,328.25 crore.
Here’re the important points you need to takedown:
Margins shrink for this quarter they came at 25.2%, which was 430 basis points, Which was lower than 29.5% that the company reported in the same quarter last financial year.
Royal Enfield company sold on a average of 189, 143 motorcycles in the quarter.
But a reduction of 2% from 193, 164 motorcycles sold over the same period in the last financial year.
“We’re focused on our long-term strategies. We have improved our business network in order to reach further accessibility. We are working for a period of time on product portfolio to achieve the new BS- VI emission norms.
While the commercial vehicle company continues to face challenges due to slowdown of there sales. Volvo Eicher Commercial Vehicles (VECV) remains profitable.
The net profit of VECV dropped to Rs 30 crore compared with Rs 76 crore in previous financial year. It sold 12,391 trucks and buses in this quarter, a reduction of 27% from 16,936 trucks and buses sold over the same period in the last financial year.
The company facing a tough and challenging situations, showing no signs of recovery except for some pre-buying.
This is one of the worst phases for CV industry. But, our main focus is on long term initiatives. We’re hoping that the industry will start growing after some period of time led by the investments in infrastructure.
At the same time, we are focusing on cost management and improving productivity, said by Vinod Aggarwal, MD and CEO VECV.
Strengthening distribution network:
Royal Enfield is the first company to strengthen the distribution of there network through out India and across the world.
During the last Financial year, Royal Enfield opens seven new large showrooms and 250 new Studio Format stores in India that takes to the total of 1,400 retail touchpoints.
Not only in India, the Royal Enfield opens a new stores in international markets like:
- France and
- The UK
Increasing its overall touchpoints to about 675 stores including 67 exclusive stores. This network expansion happened because of branding and marketing initiatives, that leads sales in outside the India.